What Has Been The Historical And Current Growth Of The Tool Steel Market?
The tool steel market has seen considerable growth due to a variety of factors.
• In the past years, the tool steel market has seen substantial growth. The market size is set to increase from $6.53 billion in 2024 to $6.92 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.0%.
Factors contributing to the growth during the historic period include robust economic expansion in emerging markets, progress in the automotive industry, along with an increased demand for forged metals.
What Can Be Expected from the Tool Steel Market in the Coming Years?
The tool steel market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for robust expansion of the tool steel market in the upcoming years, as its size is forecasted to reach $8.96 billion by 2029, with a 6.7% compound annual growth rate (CAGR).
The predicted boom in the projected timeframe is due to the escalating investments in infrastructure endeavors, the expansion of the building and construction industry, and the surge in urbanization. Key trends during this predicted period encompass technological progress, enhancements in tool steel like advanced alloys, industry consolidations, and product breakthroughs.
What Are The Essential Drivers Behind The Growth Of The Tool Steel Market?
The anticipated expansion of the automotive industry is predicted to drive the growth of the tool steel market. The term 'automotive industries' encompasses companies and organizations dedicated to the research, design, production, and promotion of motor vehicles. Various types of tool steel - including stainless steel, high-strength steel, low-carbon, high-carbon, or galvanized steel - play a vital role in manufacturing vehicle and engine parts in this industry. For example, as per the data released by India Brand Equity Foundation, a governmental export promotion agency in India, the collective production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 1.86 million units in January 2022. Consequently, the upswing in the automotive industry is anticipated to stimulate the demand for tool steel throughout the projected period.
How Are The Segments Defined Within The Global Tool Steel Market?
The tool steel market covered in this report is segmented –
1) By Product Type: Water-Hardening, Cold-Work, Shock-Resisting, High Speed, Hot-Working, Special Purpose
2) By Material Type: Tungsten, Chromium, Vanadium, Molybdenum
3) By End Use: General Manufacturing, Automotive, Defense And Aerospace, Electronics And Electrical, Ship Building, Other End Uses
Subsegments:
1) By Water-Hardening: W1 Tool Steel, W2 Tool Steel
2) By Cold-Work: D-Series (D2, D3 Tool Steel), O-Series (O1, O2 Tool Steel), A-Series (A2, A6 Tool Steel)
3) By Shock-Resisting: S1 Tool Steel, S5 Tool Steel, S7 Tool Steel
4) By High Speed: M-Series (M2, M42 Tool Steel), T-Series (T1 Tool Steel)
5) By Hot-Working: H-Series (H11, H13 Tool Steel), AISI H19 Tool Steel
6) By Special Purpose: P-Series (Plastic Mold Steels), L-Series (Low-Alloy Steels), F-Series (Forging Tool Steels)
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How Are New Trends Expected To Influence The Growth Of The Tool Steel Market Landscape?
Cutting-edge products and advancements are becoming highly sought-after in the tool steel market. The dominant organizations in this sector are focusing on the introduction of novel tools crafted from advanced materials to cater to the requirements of the industry and broaden their operational reach. For instance, in November 2022, a German company named Headmade Materials GmbH, renowned for its efficient metal 3D printing processes, introduced M2 tool steel to the market. This product, characterized by exceptional toughness, wear resistance, and hardness, along with a high part density of 99%, has displaced grade T1 in most applications globally. This transition has elevated it to the status of the most preferred high-speed steel worldwide.
Who Are the Key Players in the Tool Steel Market?
Major companies operating in the tool steel market include:
• Hitachi Metal ltd
• Swiss Steel Group
• Voestalpine AG
• China Baowu Steel Group Corp
• Tiangong International
• Sandvik
• QiLu Special Steel Co. Ltd
• Samuel Son & Co
• NACHI - Fujikoshi Corporation
• Nippon Steel
• JFE Steel Corporation
• Tata Steel Limited
• Kobe Steel Limited
• Ningbo BST Metal Products Co. Ltd.
• Nanjing Hengjie Industrial Co. Ltd.
• ArcelorMittal
• Suzuki Garphyttan Ab
• Avocet Steel
• ANCORA SCM
• Valteknica Incom SRL
• Beloretsk Metallurgical Plant AO
• Hudson Tool Steel Corporation
• Nucor Corporation
• Sovereign Steel Manufacturing
• Algoma Steel Inc.
• Ternium S.A.
• Continental Steel & Tube Co.
• A-1 Alloys
• AAA Metals Co. Inc.
• Gibbs Wire & Steel Co.
• Tata Steel Minerals Canada Ltd.
• Posco America
• Ternium Argentina SA
• Aperam South America
• Gerdau
• The Yehuda Group
• Hod Assaf Industries Ltd.
• Ezz Steel
• Kandil Steel Company
• BSi Steel Pty Ltd.
What Is The Most Dominant Region In The Tool Steel Market?
Asia-Pacific was the largest region in the tool steel market in 2024, and it is expected to be the fastest-growing region in the forecast period. The regions covered in the tool steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
